Item 4FResolution 10-051 Annual Review of Investment Policy and Strategies
September 21, 2010
Purpose of Review
Public Funds Investment Act Section 2256
Requires the governing body to review its policy and strategies annually (last review September 2009)
Resolution No. 10-051
Policy reviewed against the Public Funds Investment Act
No compliance changes required
Administrative changes only
Recommended Changes
Section V. Eligible Investments
(1.) Include FHLB Letters of Credit (LOCs)
(5.) delete work “selected”
(6.) included language to allow for “pooled CD’s”
(9.) money market fund average maturity lowered to 60 days
Recommended Changes
Section VI. Safekeeping and Custody
Security Industry and Financial Markets Association (SIFMA) replaced Public Securities Association (PSA)
Section VII. Selection of Banks and Dealers
Included language to clarify investment advisor responsibility
Recommended Changes
Section -Glossary
FDIC insurance limit was increased to $250,000
Delete reference to the Sallie Mae
Investment Strategy
Operating funds
First objective is to assure that anticipated cash flows are matched with adequate investment liquidity.
Second objective is to create a portfolio structure which will experience minimal volatility during economic cycles.
Investment Strategy
Debt service funds
Primary objective: to ensure adequate investment liquidity to cover the debt service obligation on the required payment date.
Investment Strategy
Special projects, special purpose, or construction fund
Primary objective: to ensure anticipated cash flows are matched with adequate investment liquidity.
Investment Authority
Investment Officer(s) of the City are responsible for investment decisions and activities.
Director of Finance
Deputy Director-Administration
City staff involved in the investment process shall refrain from personal business activity
Investment Objectives
Safety
Liquidity
Yield
Public Trust
Questions? Sharen Jackson 817.748.8042